How we set our budget
Each year the council must, by law, set a balanced budget.
That means the amount we expect to spend is no more than the amount of money we expect to receive.
Every year since 2010 setting a balanced budget has been harder and harder as the amount of money we receive has reduced and inflation has increased costs.
Making savings
To balance the budget we have had to make hundreds of millions of pounds of savings. And in the coming year, and the years beyond, we will need to find more savings. We must do this while maintaining the essential services that communities rely on.
So far we have needed to make savings of £381 million - that's equivalent to more than £2,629 per household in Newcastle.
In the financial year 2025 to 2026 our services need to save £21.3 million.
We expect to have to make further savings of £23.4 million in 2026 to 2027 and £18 million in 2027 to 2028.
That is a total of £62.7 million over the next three years.
Some of these budget reductions have had an impact on services, however, many have been achieved by:
- finding alternative and more cost-effective ways to deliver the same level of service
- improving efficiency
- generating more income
Setting the budget
Following the consultation a revised budget is discussed by our Cabinet, then goes to be debated at a meeting of the full City Council. If agreed the budget is then set for the coming year.